What is an LMS?

LMS: The definition

Learning Management System: The Definition

Before we explore the details, let’s give you some background info.  It’s no surprise that when people talk about learning, it conjures images of school, further education, or even once-and-done training days. What may be surprising, though, is that as the world becomes ever more digitized, education and training are following suit. Gone are the days of low engagement, retention, and high costs, as the world recognizes the benefits of eLearning.

Reflecting the switch is the boom in the LMS market—it’s projected to be worth approximately $35m by 2027, more than doubling in size from 2023. And, to serve this burgeoning market, LMS vendors have divided into two groups: one serving educational institutes, and the other catering to companies in the professional sector. This TalentLMS guide will explain all you need to know about corporate LMSs, their features, use cases, benefits, and how to choose the best LMS to meet your training needs. Consider that all software is electronic programs designed to execute specific tasks on a device (PC, laptop, tablet, mobile). An online LMS is no different—it’s electronic software or web-based tech. 

And its purpose? A learning management system is the tool organizations use to plan, develop, deliver, and track training for both internal and external learning audiences. 
As you already know, the acronym LMS stands for learning management system, but it may be helpful to break the term down visually.

What are learning management systems used for?

Learning management systems are indispensable tools in the modern professional development landscape. But there’s no way to define an LMS’s uses succinctly. Especially as they have multiple purposes, learning applications, and cater to a variety of sectors.

Types of learning supported by learning management platforms

LMS training can cater to different learning styles and supports a holistic approach that includes all your learners’ preferences. The flexibility in supporting different types of learning and different learning styles is why corporate organizations are beginning to prefer LMS-based training. In recognizing the difference in learners, LMSs help those delivering L&D programs boost engagement, completion rates, and, by extension, employee performance.

Here are the most common learning styles provided for:

Who uses an LMS?

LMS platforms cater to 3 types of users. Each distinct category interacts with the LMS in specific ways to meet its unique needs and objectives. Understanding the difference in function and perspectives of admins, instructors, and learners is key to realizing the full potential of an LMS.

These three user types all interact with an LMS in different ways, which we’ll cover further down the page. As you can imagine, these users are represented in companies of all sizes. This is why LMS software exists that caters to start-ups, small to medium-sized businesses, and global enterprises.

Which industries use an LMS?

It’s not surprising, then, that most industries choose to train using an LMS. While we could add a never-ending list of corporate sectors, here are the most common industries:

The benefits of using an LMS for both employers and employees

When answering the question of “What is an LMS?” it would be a disservice not to list the advantages of using one. Transforming traditional training to that offered on an online LMS brings big wins for both you and your employees.

Let’s take a look at what you stand to gain.

Integrating an LMS into your corporate training strategy streamlines the learning journey and can elevate the quality of training with the inclusion of diverse content. The holistic approach to training offered by LMS platforms can transform your L&D strategy for the better.

How an LMS works

The three interactive parts of an LMS

Think about when you’re using software or an app. To use it, you need to interact with it. And you do that through the interface. For example, you input data into spreadsheets in Excel, or you navigate your inbox and send emails from Gmail. An LMS is no different. But, unlike most software, an LMS has three interfaces, which differ according to the user.

Admin

Whoever is in charge of training administers their company’s L&D program.

Instructor

Instructors are able to create courses tailored to learner needs.

Learner

Whoever is enjoying the benefits of online training through the LMS portal.

Users have varying levels of permissions on LMS platforms. Consequently, each interface will have certain limitations. For example, a Learner wouldn’t be able to create courses, while an Admin or an Instructor could. While Admins have a holistic view of the platform, instructors have access to specific content creation capabilities and reporting.

What features does an LMS have?

Each LMS differs from the next. Yet many features, regardless of vendor, are the same across the board and fall into the following categories:

What are the different types of LMS deployment?

Now you know what an LMS is, let’s step back from the granular and look at the different formats LMSs can take. There’s a lot that goes into what an LMS is and what it can do. So which one is suitable for you?

Searching for “corporate LMS” can return so many results, you may feel overwhelmed by the sheer number. And making a choice on the best LMS deployment type to suit your needs? Near impossible, without some background info.

Let’s make that choice easier for you by breaking down the most popular LMS types:

Do I need to pay for an LMS?

Most likely. There are four basic types of payment models that learning management systems offer.

1. Freemium lets you access an LMS for free. A free LMS can come with certain restrictions, though. For example: time-limited trials. In the instance of forever-free models, certain features may be restricted.
2. Subscription services offer LMS software for a fee paid at regular intervals. Most vendors offer pricing based on features and/or users, so you can pick the one most suited to your needs.
3. Licensing models will have you pay a one-time fee for unlimited access to the software. But, should a new version become available, you’ll have to renew your license at an additional cost.
4. Open-source software is technically free. What you will pay for is the time and effort you put into operating the software. This will require dev knowledge, or for you to employ a dev to get the most out of it. 

Are there other types of learning platforms other than an LMS?

Simply put: yes. LMSs have been around since the 90s (and in some forms even before then). Of course, eLearning tech has since advanced. But as it advances, LMSs have leveled up, adding features, upgrading interfaces, and cementing themselves as the cornerstone of online training.

Alongside this evolution, other software has developed. Learning experience platforms (LXP) are a similar offering to LMSs. But LXPs are somewhat new, and in their early years. Yet some people are of the opinion that LXPs are the next step in the online learning sphere.

LMS vs LXP

Fear not. LMSs remain the mainstay of learning tech. This is because they prioritize a structured training environment and can also offer the personalized, social learning experience that’s the MO of LXPs. LXPs focus on a looser learning experience that requires employees to take the initiative to grow on their own, and in the direction they desire.

This learner-centric focus, though, gives employees greater autonomy. Depending on the LXP’s features, content can be user-generated or gathered from elsewhere. Regardless, the greater freedom allows learners to access personalized content. A fresh idea, and definitely worth keeping an eye on. But with greater freedom comes greater responsibility… which can come with some drawbacks:

Less structure: Without the structured learning paths created by admins and instructors that LMSs have, LXPs can demotivate learners. And they definitely don’t check the box of supporting sequenced or mandated training, such as compliance.

Too much choice: Spoiling your learners for choice can lead to decision fatigue, unfinished courses, and a lack of clear direction for growth.

Poor quality courses: Some LXPs rely on user-generated content. Which can be great in some cases. In others, not so much, due to varied content design and quality control.

Cost: Investing time and money into both an LXP and generating content (either from in-house experts or content providers) can be costly in terms of both time and money.

Tech stack integration: LXPs can suffer from poor interconnectivity with other systems, like your HR tools, and other software your org relies on.

Counterintuitive: Rich content and end-user-centric LXPs make for a tricky combination. Navigating through such a platform can prove difficult for the less tech-savvy.

Narrow focus: LXPs tend not to cater to a wider variety of learning styles. Excluding instructor-led training and those who prefer guided training can lead to lower engagement.

How to pick the best LMS for your needs

So, now you’re sure a learning management system is the right training platform for you… How do you choose one?

What you’re going to want to do is create a checklist to compare to any LMS that makes it to your shortlist. Luckily for you, here’s a quick step-by-step on how to make the right choice: